TORONTO, Jan. 31 /CNW/ - Pelangio Mines Inc. (PLG: TSX) ("Pelangio" or
the "Company") announces that it has closed its previously announced sale of
its Detour Lake Property to Detour Gold Corporation ("Detour Gold"), a newly
formed company part of the Hunter Dickinson group of resource companies.
Pelangio and Detour Gold entered into an Asset Purchase Agreement (the
"Agreement") on August 21, 2006, whereby Pelangio's Detour Lake Property would
be transferred to Detour Gold, in consideration for 20 million common shares
("Detour Shares") of Detour Gold, $5 million cash payment and the funding of
work on the Detour Lake Property from the date of the Agreement to closing.
Concurrent with the closing of the sale, Detour Gold completed an initial
public offering ("IPO") of 10 million common shares at an offering price of
$3.50 per common share, raising gross proceeds of $35 million. Last October,
Detour Gold completed a $10 million private placement. Detour Gold has advised
that upon completion of the IPO and the sale transaction, there were
40 million Detour Shares issued and outstanding.
The 20 million Detour Shares were issued to Pelangio from treasury as
part consideration for the sale of the Detour Lake Property to Detour Gold.
Prior to the closing of the sale transaction, Pelangio did not own any Detour
Shares. The issuance of the 20 million Detour Shares to Pelangio upon the
completion of the sale transaction and the closing of the IPO, represents
approximately 50% of the issued and outstanding Detour Shares. The Detour
Shares are held directly by Pelangio and not jointly or in concert with any
The transaction converts Pelangio's interest in the Detour Lake Property
from a direct project interest into an indirect interest through an equity
ownership in Detour Gold. Pelangio's 20 million Detour Shares are held in
escrow pursuant to an escrow agreement with Detour Gold and Computershare
Investor Services Inc. and will, subject to certain exceptions, not be
released from escrow until July 31, 2007. Furthermore, provided Pelangio
continues to hold in excess of 20% of the issued and outstanding Detour
Shares, any sales of the Detour Shares by Pelangio through the facilities of
the Toronto Stock Exchange are subject to certain restrictions for a period of
2 years. Pelangio holds its Detour Shares for investment purposes and, subject
to the forgoing, will review its alternatives as appropriate.
As previously announced on January 9, 2007, Detour Gold has commenced a
50,000 metre drilling program at the Detour Lake Property.
For further information on the sale transaction, refer to Pelangio's
Management Information Circular dated September 25, 2006 and available on
This transaction is consistent with Pelangio's strategy of seeking
partners for, or selling an interest in promising properties that are reaching
the development stage. Going forward, Pelangio will concentrate its
exploration efforts on its large and promising property in Ghana and evaluate
other opportunities to provide shareholder value.
The Company's main focus is to advance its exploration programs on its
premier land position in Ghana totaling 411 square kilometres, located on
strike and adjacent to AngloGold Ashanti's Obuasi gold mine.
Forward Looking Statements
Certain statements herein may contain forward-looking statements and
forward-looking information within the meaning of applicable securities laws.
Forward-looking statements or information appear in a number of places and can
be identified by the use of words such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate" or "believes" or variations
of such words and phrases or statements that certain actions, events or
results "may", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking statements and information include statements
regarding our proposed plans in respect of our Ghana property and our interest
in Detour Gold and are subject to such forward-looking risks, uncertainties
and other factors which may cause our actual results, performance or
achievements, or industry results, to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statement or information. Such risks include gold price
volatility, change in equity markets, political developments in Ghana, the
uncertainties involved in interpreting trenching and channel sampling results
and other geological data, increase in costs and exchange rate fluctuations
and other risks involved in the gold exploration and development industry. See
our annual information form, management information circular, and our
quarterly and annual management's discussion and analysis for additional
information on risks and uncertainties relating to the forward-looking
statement and information. There can be no assurance that a forward-looking
statement or information referenced herein will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements or information. Also, many of the factors are
beyond the control of Pelangio. Accordingly, readers should not place undue
reliance on forward-looking statements or information. All forward-looking
statement and information herein are qualified by this cautionary statement.
For further information:
For further information: or for a copy of Pelangio's early warning
report, please contact: Ingrid Hibbard, President & CEO - Pelangio Mines Inc.,
Tel: (905) 875-3828, Fax: (905) 875-3829, Email: firstname.lastname@example.org; Laurie
Gaborit, Investor Relations - Pelangio Mines Inc., Tel: (416) 350-2112, Fax:
(905) 875-3829, Email: email@example.com